Back to top

Image: Bigstock

One Year Later: Lessons from the Coronavirus Stock Sell-Off

Read MoreHide Full Article

  • (0:45) - Lessons To Learn From The Pandemic Selloff
  • (12:30) - Stock Screener Criteria: Finding Today’s Value Stocks
  • (17:15) - Tracey’s Top Stock Picks
  • (23:30) - Episode Roundup: PINS, PAG, EC, TM, TRTN
  •                Podcast@Zacks.com

 

Welcome to Episode #228 of the Value Investor Podcast

Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.

It’s been a tough year.

In March 2020, the coronavirus pandemic went global, resulting in deaths and economic shutdowns across Europe, Asia and North America.

Stocks Plunged on Coronavirus Fears

In February and March 2020, the panic on Wall Street was real. The stock market plunged into a bear market in the quickest pace ever seen in history.

But Congress also moved quickly to pass a massive $3 trillion aid package.

The size of the package soothed Wall Street.

Stocks hit their lows in March and rebounded.

They haven’t looked back, with the major indexes now, a year later, breaking out to new all-time highs.

What did you do in March 2020 when stocks plunged?

3 Lessons from the Coronavirus Sell-Off

1.       Don’t Panic. Sometimes it’s better to do nothing on a quick market sell-off.

2.       You don’t have to buy at the lows to be a winner. Tracey bought Pinterest (PINS - Free Report) and Penske Automotive (PAG - Free Report) in Zacks Value Investor portfolio months after they hit their coronavirus sell-off lows. Penske had already rebounded 40% when she bought it. It’s up over 100% since.

3.       Buy the leaders. The best companies still took a hit during the pandemic, but they were able to weather the storm. When a crisis happens, who can survive?

A Year Later, What Stocks Are Still Cheap?

The pandemic looks to be winding down, thanks to the rollout of the vaccines.

Where can you find value stocks in March 2021 with the top Zacks Ranks?

1.       Ecopetrol (EC - Free Report) is a Big Oil Colombian energy company. It’s a Zacks #1 Rank (Strong Buy) stock. It’s trading with a forward P/E of 11. Earnings are expected to rise 228% in 2021 as the global economy reopens.

2.       Toyota (TM - Free Report) has a forward P/E of just 11. With earnings expected to rise in fiscal 2021, it has a PEG ratio of 0.99. It is a rare stock that has both growth and value characteristics. Auto sales are expected to remain strong in 2021.

3.       Triton International is a global seller and lessor of intermodal containers. It’s dirt cheap with a forward P/E of 8.2. Shares are up 109% over the last year as shipping remains on fire. It pays a dividend, currently yielding 3.9%. 

What else should you know about investing one year after the coronavirus sell-off?

Listen to this week’s podcast to find out.

[In full disclosure, Tracey owns shares of PINS in her personal portfolio.]

Legal Marijuana: An Investor’s Dream

Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.

Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.

Download Marijuana Moneymakers FREE >>

Published in